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    Determing the Budgeted Cash Disbursements for December

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    The Bandeiras Company, a merchandising firm, has budgeted its activity for December according to the following information:

    - Sales at $560,000, all for cash.
    - Merchandise inventory on November 30 was $303,000.
    - Budgeted depreciation for December is $38,000.
    - The cash balance at December 1 was $30,000.
    - Selling and administrative expenses are budgeted at $60,000 for December and are paid in cash.
    - The planned merchandise inventory on December 31 is $268,000.
    - The invoice cost for merchandise purchases represents 70% of the sales price. All purchases are paid for in cash.

    The budgeted cash disbursements for December are what?:
    $417,000
    $402,000
    $453,000
    $431,000

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    https://brainmass.com/business/cash-budgeting/determing-budgeted-cash-disbursements-december-207702

    Solution Preview

    Cash Disbursement is
    Merchandise Purchase = ...

    Solution Summary

    This solution explains in a neat and step-wise manner how to calculate the budgeted cash disbursements for December. All calculations and the answer are provided.

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